Bank of Korea pushes consortium model for stablecoin issuance oversight
South Korea’s central bank has renewed its call to keep Korean won-pegged stablecoin issuance under the control of commercial banks, warning that privately issued tokens could pose risks to monetary policy and financial stability.
In a report submitted to the National Assembly’s Strategy and Finance Committee, the Bank of Korea (BOK) described won stablecoins as “currency-like substitutes”, reports Cointelegraph.
It said any rollout must consider not only industrial innovation but also monetary policy transmission, foreign exchange stability and systemic risk. The central bank reiterated concerns that stablecoins could be used to bypass foreign exchange regulations, including reporting requirements. It also argued that allowing non-bank firms to issue stablecoins could clash with Korea’s long-standing separation of banking and commerce. Banks, the BOK said, are already subject to capital, governance and compliance standards, making them better positioned to manage issuance. The report arrives as lawmakers continue debating a delayed stablecoin framework.
Proposed safeguards and international comparisons
While acknowledging that programmable stablecoins could support digital asset innovation and modernize payments, the BOK proposed structural safeguards. Among them is a bank-centered consortium model, under which financial institutions would jointly manage issuance and oversight. The central bank also suggested creating a statutory interagency policy body to coordinate approvals and supervision across regulators.
According to local reporting, the BOK referenced the United States’ GENIUS Act framework as an example of cross-agency supervision. That model involves oversight from the Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation. The BOK appears to be advocating for a similarly coordinated approach in South Korea. By embedding stablecoin oversight within existing financial regulatory structures, the bank aims to reduce systemic and foreign exchange risks. However, the specifics of how such a framework would be implemented remain under discussion.
Legislative delays and industry pushback
The central bank’s position has drawn resistance from some industry participants and lawmakers. Sangmin Seo, chair of the Kaia DLT Foundation, previously told Cointelegraph that giving banks primary control over stablecoin issuance lacks a “logical foundation.” He argued that clear regulatory standards for issuers could mitigate risks without restricting issuance to banks. Disagreements over whether banks should hold majority stakes in stablecoin entities have delayed legislation initially expected in October 2025.
Regulators remained divided as of Nov. 25, and lawmakers later indicated in mid-December that a resolution could come in January. However, no final timeline has been confirmed. The ongoing debate underscores broader tensions between financial stability concerns and the desire to foster digital asset innovation in South Korea.
Recently we wrote that the findings reflect behavior among crypto-active users rather than the general public, as the survey excludes major markets such as China and Canada.
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